Carnival 2013 Q2 earnings report

DividendMax Ltd.

Carnival 2013 Q2 earnings report

2Q Highlights

- 2Q revenues were $3.5b, in line with the prior year
- 2Q net revenue yields in constant dollars decreased 1.9%
- Excluding fuel, constant dollar net cruise costs per available lower berth day
("ALBD") increased 8.8% primarily due to timing of dry-dock expenses, vessel repair
costs and non-recurring items which benefitted the prior year
- 2Q fuel consumption per ALBD decreased 5.7% compared to the prior year
- 2Q Non-GAAP (diluted) earnings per share of $0.09, compared to $0.20 for the
prior year
- 2Q U.S. GAAP (diluted) earnings per share of $0.05 included net unrealized
losses on fuel derivatives of $31m

2013 Outlook

- At this time, cumulative advance bookings for the remainder of 2013 are
behind the prior year at prices below the prior year levels
- Net revenue yields on a constant and current dollar basis for FY 2013 are
expected to be down 2 to 3% compared to the prior year, in line with May guidance
- Excluding fuel, net cruise costs per ALBD for FY 2013 are expected to be
higher by 3.5 to 4.5% on a constant and current dollar basis
- FY 2013 non-GAAP earnings per share (diluted) expected to be in the range of
$1.45 to $1.65, compared to $1.88 for 2012
- 3Q 2013 non-GAAP earnings per share (diluted) expected to be in the range of
$1.25 to $1.33, compared to $1.53 in 3Q 2012

Chairman and Chief Executive Officer Micky Arison commenting on these results:

"Our 90,000 global team members are dedicated to delivering an outstanding vacation experience to 10 million guests each year. The level of quality, variety and innovation available throughout our fleet has never been greater and our guests are reaping the benefits of truly exceptional vacation values. We are working to more broadly communicate that message through stepped up consumer and trade marketing efforts, as well as strengthened engagement of our travel agent partners. We believe these initiatives,
combined with slower supply growth, will lead to increased yields."

"In addition, we remain focused on reducing our fuel dependence. By year end, we will achieve a 23 percent cumulative reduction in fuel consumption since 2005 and expect our research and development efforts in fuel saving technologies to continue to bear fruit. We have strengthened our management teams in maritime and technical ship operations and product delivery, as well as marketing and communications. We expect the combination of these efforts will drive improved return on invested capital over time."

Companies mentioned